Thiruvananthapuram: In 2019, finance minister T M Thomas Isaac was on a difficult mission: finding funds for the ambitious Rebuild Kerala programme to reconstruct a flood-ravaged state. Faced with a dip in revenue receipts amid mounting debts, it was practically impossible to ensure budgetary allocation for the project. In the end, he chose KIIFB (Kerala Infrastructure Investment Fund Board) to finance the project.
Isaac, who is facing a tough situation on the financial front this time, will once again be forced to depend on KIIFB to initiate major development works in state. The budget, which he is set to present on Friday, is unlikely to spring major surprises as he has a task at hand: complete the projects taken up by KIIFB.
With LDF entering its last year in power, no major development projects can be expected in the budget. But there are several projects that were taken up and left incomplete; most of them are infrastructure projects.
After the state government started totally depending on KIIFB for funding projects, all departments are now relying on it. KIIFB has given tenders for 347 projects at an estimated cost of Rs 13,616 crore. Till date, works started in 269 projects for which Rs 10,581 crore is the total outlay.
But mobilizing funds for KIIFB was not an easy task for Isaac. Though Pravasi Chitty was a concept to mobilize funds, it was not a success. The aim was to mobilize Rs 1,000 crore, but only Rs 135 crore could be raised using this plan.
Critics rate KIIFB as a bubble which will burst any time. With limited funds in its kitty, state government is going to struggle to repay the bonds it has taken and clear bills for the works it has sanctioned. However, Isaac has no worries since the repayment question will come into play only after May 2021.
Isaac, who is facing a tough situation on the financial front this time, will once again be forced to depend on KIIFB to initiate major development works in state. The budget, which he is set to present on Friday, is unlikely to spring major surprises as he has a task at hand: complete the projects taken up by KIIFB.
With LDF entering its last year in power, no major development projects can be expected in the budget. But there are several projects that were taken up and left incomplete; most of them are infrastructure projects.
After the state government started totally depending on KIIFB for funding projects, all departments are now relying on it. KIIFB has given tenders for 347 projects at an estimated cost of Rs 13,616 crore. Till date, works started in 269 projects for which Rs 10,581 crore is the total outlay.
But mobilizing funds for KIIFB was not an easy task for Isaac. Though Pravasi Chitty was a concept to mobilize funds, it was not a success. The aim was to mobilize Rs 1,000 crore, but only Rs 135 crore could be raised using this plan.
Critics rate KIIFB as a bubble which will burst any time. With limited funds in its kitty, state government is going to struggle to repay the bonds it has taken and clear bills for the works it has sanctioned. However, Isaac has no worries since the repayment question will come into play only after May 2021.
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